ICAI removes Varanasi based CA name from register of members for taking delivery of shares by fake authority letter

ICAI removes Varanasi based CA name from register of members being found guilty of misconduct. The High Court held the CA guilty of taking delivery of shares by fake authority letter and disposing them off.

The Hon’ble High Court of Allahabad in pursuance of Section 21(6)(c) of the Chartered Accountants Act, 1949 had ordered that the name of a Varanasi based Chartered Accountantbe removed from the Register of Members for a period of five years for having been found guilty of professional misconduct falling within the meaning of “Other Misconduct” under Section 22 read with Section 21 of the Chartered Accountants Act, 1949.

Allegedly, the Chartered accountant had taken delivery of shares of RIL on behalf of the complainants, by submitting an authority letter, which were claimed by the complainants as totally  bogus and false.

The ICAI Disciplinary Committee found that the CA being the Statutory Auditor of RIL, had taken delivery of the shares registered in the name of DFL. He has failed to bring any evidence on record that these shares were delivered back to DFL. The CA had  admitted that he had received back the shares from the shareholders. These shares had been disposed of by the CA who failed to bring any material or evidence on record that these shares were disposed of as per the instructions of the concerned shareholders and the sale proceeds of the same had been accounted for as per the directions or instructions of the Complainants.

The Committee noted that the CA has taken delivery of the shares on an authority letter which was forged and the fact which has not been rebutted by the CA as well as the Company. The Committee also noted from the letter received from office of the Assistant Commissioner of Police: CBD:EOW:Crime Branch, New Delhi that the signature in the authority letter was opined to be forged according to the FSL Report

The Hon’ble High Court expressed agreement with the findings of the ICAI Committee and opined that a Chartered Accountant has a pious duty, having fiduciary relation with his client. He indulged in financial transactions in respect whereto people have great faith in him. In the present case, Respondent had not only cheated Complainants but has also played an active role  in defrauding with the huge money of more than four crores of Complainants and benefited himself in a wholly illegal manner. It is a very serious thing. The Hon’ble High Court opined that such persons should not be allowed to remain on the Roll of ICAI by serving punishment for a limited period.

Now the ICAI, in exercise of the powers conferred by sub-section (2) of Section 20 of the said Act read with Regulation 18 of the Chartered Accountants Regulations, 1988 and in compliance with the aforesaid Order of the Hon’ble High Court has notified that the name of Shri O.P. Tulsyan stands removed from the Register of Members for a period of five years w.e.f. 20.02.2018.

During the aforesaid period he shall not practise as a Chartered Accountant in terms of the order of the Hon’ble High Court of Allahabad.

Download ICAI Notification for removal of name Click Here >>